A Financial Times report published this Thursday (13) claimed that the cryptocurrency exchange. Finance One of the UK companies was given a “grossly inaccurate” annual report. The allegation comes from the co-owner of Dimplx, a British company formed as part of a joint venture with Binance.
According to Dimplx directors, the exchange filed 2020 financial statements for one of the companies that “did not accurately report” the nature of its business. Additionally, the statement did not clearly present the company’s revenues, assets and liabilities, “including potential tax liabilities,” according to the indictment.
Finances in England are in trouble
Dimplx made the claim this month in its own filings with Companies House, the government’s main business registry, the FT reported. The company had raised questions about the role played by companies in the country in the global operations of finance in the period before the Financial Conduct Authority FCA warned against the company.
In June 2021 the FCA issued a warning regarding the irregular operation of Binance in the UK. The regulator expressed concerns about Binance, warning of its “complex and high-risk financial products”. [representam] A significant risk.
Also, the FCA said that Binance did not provide background information about its global operations. For example, this includes “business names and roles for all companies in the group worldwide.” The exchange, for its part, said it wanted to re-establish ties with the FCA. It will then reapply for UK oversight of its operations.
Binance and Dimplx formed a joint venture in the UK in 2019. But the relationship between the companies is not good. Dimplx also said it plans to sue Binance, but declined to provide details. Meanwhile, Binance said it cannot respond to all allegations, with the shareholder facing lawsuit threats. “However, we understand that the minority shareholders are disappointed that the joint venture did not come forward,” he said.
Finance Digital
Dimplx’s allegations are Binance Digital, the second UK Binance company to be incorporated in the country in November 2019.
Dimplx director Simon Dingle, who served on Binance Digital’s board until December 2020, alleged several errors in Binance Digital’s 2020 accounts. The exchange’s statement for the year suggested Binance Digital held around £100 million in “cash and/or bank balances”. The same amount had to be paid to “creditors”.
The Diimplx directors believed the amount represented dues “on behalf of Binance Digital customers”. However, the financial statements recorded “zero turnover or charges relating to transactions with any customer during the year”.
